December 2, 2025
PORT
Economic Development
DATE: December 2, 2025
TO: Mayor Martinez as the President of the Board of the Richmond Surplus Property Authority (SPA) and SPA
Board Members
FROM:
Nannette Beacham, Director of Economic Development
Charles Gerard, Port Director
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Lease Agreements between the Surplus Property
Authority and Far West Cider, LLC, CDK Wines, LLC
dba Carica Wines, and KARIBU Lounge, Inc. at 1325
Canal Boulevard
FINANCIAL IMPACT: This action authorizes the receipt of annual lease revenue from three short-term leases, in the amount of
$95,232, to the Port Enterprise Fund FY 25-27 budget.
(Account String: 40162780-362801)
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
The Port of Richmond is seeking approval of three short- term lease agreements with Far West Cider, LLC, CDK
Wines, LLC dba Carica Wines, and KARIBU Lounge, Inc.
(formerly The Wachira Group, LLC dba Wachira Wines)
for certain areas within the property located at 1325
Canal Boulevard (Riggers Loft Building).
RECOMMENDED ACTION:
APPROVE lease agreements with:
1. Far West Cider, LLC in the amount of $74,232
annually;
2. CDK Wines, LLC dba Carica Wines in the amount
of $10,500 annually; and
3. KARIBU Lounge Inc. (formerly The Wachira
Group, LLC dba Wachira Wines) in the amount of
$10,500 annually;
AGENDA
REPORT
December 2, 2025
commencing December 1, 2025, ending November 30,
2026– Economic Development Department –
Port/Surplus Property Authority (Charles Gerard 510-
620-6792).
DISCUSSION:
The building located at 1325 Canal Boulevard is owned by the City of Richmond acting through its Surplus Property Authority and managed by the Port of Richmond. The facility was previously under a lease held with a private operator that has since been terminated and evicted through judicial action, returning full possession and control of the facility to the City.
At the time of that eviction and judicial action, three small producers - Carica Wines, Far West Cider, and Wachira Wines – were operating within the building under sublease or alternating proprietor agreements with the former evicted tenant. To preserve continuity of business operations, the Port, with the assistance of the City Attorney’s Office, seeks to negotiate and enter into individual lease agreements directly with each of these small producers for a term of twelve (12) months and at the same financial terms previously paid directly to Rigger’s Loft. Within the next year, City staff will conduct a market analysis and release a Request for Proposal (RFP) for future potential uses.
Each lease establishes a direct landlord–tenant relationship, formalizing occupancy of specific production areas and granting shared use of common areas such as hallways, restrooms, and parking.
Key provisions of short-term lease agreements include:
Term: Twelve (12) months commencing December 1, 2025, and ending on November 30, 2026
Use: Limited to wine or cider production, storage, and related administrative functions in accordance with applicable Alcohol and Tobacco Tax and Trade Bureau (TTB) and the California Department of Alcoholic Beverage Control (ABC) regulations. There will be no tasting room, event center, and no kitchen as part of these lease terms.
Rent: Remains the same as what each tenant was paying prior to the eviction, as provided below, so as to ensure continuity of business. Rent is subject to annual CPI (Consumer Price Index) adjustment of 2% - 5%.
o CDK Wines, LLC dba Carica Wines - $875 per month rent plus utilities totals $10,500 annually ($1.45 per square foot)
o Far West Cider, LLC - $6,186 per month rent plus utilities totals $74,232 annually ($1.76 per square foot)
o KARIBU Lounge, Inc.- $875 per month rent plus utilities totals $10,500 annually ($1.68 per square foot)
Security Deposit: Equal to one month’s rent.
December 2, 2025
Maintenance: Tenants maintain interior and operational areas, while the City maintains structural and common areas.
Compliance: City, State, and Local compliance; tenants shall comply with any permits, insurance, conditions, and uses, as stated in the lease. Utilities: The Landlord will provide all utilities serving the Lease Premises, including water, sewer, gas, electricity, trash removal, and other standard commercial services (“Utilities”). The Tenant will reimburse the Landlord for Tenant’s Pro Rata Share of all Utility costs for the Real Property, which will be charged as additional rent.
These leases ensure continued activation of the Rigger’s Loft Building as a production facility while generating lease revenue for the Port and preserving regulatory oversight and control by the City.
Combined annual base rent from the three leases totals approximately $95,232 plus utilities. Rent revenues will be deposited into the Port Enterprise Fund and support ongoing maintenance and operational costs for the Port. The table below shows the square footage for each prospective tenant for certain areas within the property at 1325 Canal Boulevard. The Depiction of Lease Premises is attached to each lease as Exhibit B, this floor plan shows where each tenant is located inside the building and outside the building with dedicated square footage.
Below is a table of current square footage, price, and rent details.
Prospective Tenant 1325 Canal Blvd Price per square
foot (sq ft)
Operational Shared
Areas
Rent Amount
CDK Wines, LLC DBA
Carica Wines
603 sq ft
Inside building
$1.45 per sq ft
3,310 sq ft
Includes tank areas,
crushing pad, &
sanitation area
$875
Far West Cider LLC
(FWC)
3,510 sq ft
Inside building
$1.76 per sq ft $6,186
Karibu (formerly Wachira
Wines)
522 sq ft
Inside building
$1.68 per sq ft $875
Made in Richmond
Carica Wines - is known for producing critically acclaimed single-vineyard wines from small lots of premium grapes with a mission to make the highest quality wine. These batches are exclusively made in Richmond.
Far West Cider – is a family-owned business, apples are squeezed into juice at the family farm then cared for throughout fermentation in Richmond and made into cider.
Karibu (formerly Wachira Wines) - is a Black-owned, woman-owned winery founded by Dr. Chris Wachira, the first Kenyan-born Californian winemaker, in Richmond.
All operators have operated as part of the Rigger’s Loft small producer community and remain in good standing with the City. The prospective leases continue business operations with no new construction, zoning, or environmental impacts requiring additional public review. Authorizing the negotiation and execution of these three lease agreements will preserve the operational continuity of the leased premises, support local producers, and provide consistent revenue to the Port of Richmond.
December 2, 2025
DOCUMENTS ATTACHED:
Attachment 1: Lease Agreement – Far West Cider, LLC
Attachment 2: Lease Agreement – CDK Wines, LLC dba Carica Wines Attachment 3: Lease Agreement – KARIBU Lounge Inc.